a shoulder to lean on .,/t/bujpobm$bodfs$pvodjm and more · into establishing makna. most...

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01

A Shoulder to leAn on And More

ANNUAL REPORT 2014

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02 03OUR MiSSiON

OUR OBJECTiVE

To mobilise resources in order to provide curative, preventive, research and support services to cancer patients and families, high risk groups and the general public.

To pool and utilise all efforts, expertise and finance from all sectors of the society to fight cancer and reduce related pain, morbidity and the suffering that cancer patients undergo.

MEaNiNgfUl BEgiNNiNgMAKNA was founded by Dato’ Mohd Farid Ariffin in Kuala Lumpur, Malaysia, in 1994. He left his Deputy Health Minister post to set up MAKNA, after realising through his own personal experience with his son’s struggles with leukemia, that cancer patients from poor financial background would actually find it difficult to afford treatment.

21 years on, MAKNA is still going strong. This home-grown social enterprise that offers a comprehensive range of services to those affected by cancer continues to play an important part in helping cancer patients with treatment, financial support and post-treatment issues, regardless of background, race, creed, colour and station.

More than 420,000 cases have received help since MAKNA

started its journey.

MAKNA

CONTENT040506

0810

11121314

Message from Founder & President

Foreword from General Manager

Board of Trustees and Executive Committee

Digital Mobile Mammogram Unit

Bursary Programme (Financial Assistance)

Home Visit Volunteers

Education and Awareness Cancer Research

PPUKM - Makna Cancer Centre

Donor Acquisition

Other Services

Activity Highlights

Financial Statement

1516171819

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04 05

MESSagE fROM fOUNdER & PRESidENT

Dato’ Mohd Farid Ariffin

MAKNA was founded on a dream. Many would probably think of this as an over-simplified way of putting things. In reality it isn’t, because sometimes what could turn out to be a significant achievement in one’s life started as nothing more concrete than a dream.

But it is what one does with one’s dream – now that is what makes a whole world of difference.

I have worked hard for my dream. I have poured my heart and soul into establishing MAKNA. Most importantly, I have also been blessed. Along the way, I have crossed paths with kind souls, many of whom have dedicated much effort, time and resource in helping to make this dream come true. The MAKNA that you see and hear of today is the result of the collective willpower of these generous, far-sighted individuals. And because of them, MAKNA has helped thousands of cancer patients and their families, as they went through what could well be the biggest struggles of their lives.

THE UNEXPECTED JOURNEY

It has been the most thrilling and rewarding 20 years of my career to see MAKNA grow from just a local charity helping one government hospital to nearly 92 hospitals throughout the country. On an annual basis we handle 10% of the country’s cancer incidences through the patient assistance programme, which translates to more than 420,000 cancer cases to date.

We are the first charity with digital mobile mammography service for early detection of cancer, and serviced more than 60 rural locations nationwide. We are building our second and third set to serve Sabah and Sarawak.

It might seem like an overused cliché but every bit does count. The smallest contribution can mean the difference between life and death to the many underprivileged cancer patients. And we have seen it on many occasions; cancer patients from poor financial background often lost the fight with cancer not because it was incurable, but because they were unable to afford the treatment.

This is where I can proudly say that MAKNA has made the difference – from the first instance that our doors opened until 2014, we have helped over 420,000 cancer cases. But again, we couldn’t have done so without help from donors and the public, individually and collectively.

But the giving society is stretched. So is the ringgit. And there is so much more yet to be done for patients and not to mention to the cancer cause in general. Because as we continue in our mission to help cancer patients with financial and emotional support, we are at the same time championing public education, research and the sharing of information on cancer.

Research remains at the forefront through capacity building and new screening tools to the ever-needed stem cell registry for unrelated donors needing transplant for leukaemia. The range of service is comprehensive and we are now expanding overseas into Vietnam, where the plight of cancer patients are in dire need of help.

Home stays and home visits to the patients’ homes keep us true to our mission: to provide timely and uninterrupted help. All the above achievements are presented in a new infographic format for a quick and compact reference.

The 20-year journey could not have happened without the tireless support, dedication, commitment, loyalty and belief of the 180 staff in MAKNA.

It is our hope that as we help those who have cancer now fight the disease, we are at the same time doing as much to empower others to take ownership of their health to a point where in the future we can hopefully consign cancer to the pages of history.

There is only so much that one man can do. MAKNA will continue to need the tireless efforts of our dedicated staff and the unwavering support of caring individuals and organisations to carry on our work so that anyone who is in need of help shall be helped.

It is my hope that you will continue to partner with us on this meaningful journey. The smallest contribution can mean the difference between life and death to many patients. With a little help from you, my friends, the light will never go out for cancer patients. Thank you for your continued support and belief.

To all of you and your family members who understood and supported your loved ones in their own journey and challenges at MAKNA, I say thank you.

The next 20 years will give birth and give rise to a new breed of MAKNA staff – but still tenacious in making sure the patients remain our top priority in delivering timely and uninterrupted service.

We need to prepare and equip ourselves for what’s to come in the next 20 years. The legacy MUST and SHALL live on without us and for that we must prepare to be stewards to the future staff of MAKNA.

I hope you will all join me in preparing MAKNA for its future.

The smallest contribution can mean the difference between life and death to the many underprivileged cancer patients.

We need to prepare and equip ourselves for what’s to come in the next 20 years.

fOREWORd fROM gENERal MaNagER

Farahida Mohd Farid

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06 07

YABhg Toh Puan Sri Sagiyah Salikin(Wife of Tun Dato’ Seri Ahmad Sarji,

Chairman of PNB)

YBhg Professor Tan Sri Dato’ Dzulkifli Abdul Razak

Chair of Islamic Leadership Office

Vice PresidentProfessor Emeritus Dr Cheong Soon Keng

Dean UTAR & Haematologist PPUKM

Honorary SecretaryEric Lai Tuck Sing

Lawyer, Lai & Associate

Assistant Honorary SecretaryDato’ Freida Dato’ Mohd Pilus

Chairman, Sekolah Sri Cempaka (International)

Honorary TreasurerZainol Talib

Chartered Fin Consultant & Life Underwriter Training Council Fellow

Assistant Honorary TreasurerDouglas Tan Hock Kee

Executive Director, Asian Business Solutions Sdn Bhd

MemberPuan Mimi Hafizan Abdul Rahman

Director of Klinik Nina

MemberProfessor Dr Ishak Mat

Lecturer, Advanced Medical & Dental Institute, Universiti Sains Malaysia

MemberProfessor Dr Jafri Malin Abdullah

Head of Department, School of Medicine Hospital Universiti Sains Malaysia,

Kubang Kerian, Kelantan

MemberDr Imran Abdul Khalid

Head, Surgery Department, Hospital Seberang Jaya

MemberProfessor Abdul Aziz Baba

Vice President, International Medical University

MemberProfessor Datin Paduka Dr Aini Ideris

Senior Lecturer, Universiti Pertanian Malaysia

YAM Tengku Puteri Lela Wangsa Pahang Tengku Tan Sri Hajah Meriam Binti Sultan Haji Ahmad Shah

PSM SIMP, JP

BOaRd Of TRUSTEES

EXECUTiVE COMMiTTEE

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08 09

digiTal MOBilE MaMMOgRaM UNiT

MAKNA believes that early detection and prevention are important in reducing cancer morbidity and mortality. With

this in mind, MAKNA introduced its Digital Mobile Mammogram Programme in 2011 to deliver breast cancer screening

service to locations all over Malaysia, from districts to cities, from rural to urban poor dwellings, to those who are

unable to afford or have access to such facility. By doing so, MAKNA aims to enable the detection of breast cancer at

the early stages and help reduce breast cancer death rates.

Total locations in 2014:

Corporate

19 Rural

13Total

32

Corporate

885 Female

70% Male

30% Rural

1,805Total 2,690

1%Abnormal

99%Normal

Total clinical breast examination in 2014:

Corporate

675 Perkeso

318 Rural

1,677Total 2,670

40-4950-59 60-69

>70

48%

0%13%

39%

Normal

2,552Abnormal

116Confirmed

Breast Cancer

2

Total mammogram screenings in 2014:

Detected Abnormalities in 2014:

Screening by age:

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10 11

HOME ViSiTAll patients assisted under the Bursary programme are visited at

home by the MAKNA Home Visit Team. Through these visits, the

Home Visit team is able to ensure that donations are channelled

to the rightful recipients. In addition, they are able to establish

rapport with patients and better understand their conditions as

well as socio-economic background. The team plays an essential

role as well in providing emotional support and encouragement to

patients to continue with their treatment or check-ups.

Home Visit role:

• Provide moral support

• Ensure patients receive aid and continue with treatment

• Advise patients on and help them apply aid from other agencies

MAKNA

1,831patients visited at home

48%of 3,824 cases

1,711 adult patients

120 paediatric patients

Bursary

Home Visit

Approved Bursary Applications

Latest Status and Recommendations

Total visits in 2014:

BURSaRY PROgRaMME (fiNaNCial aSSiSTaNCE)Under the Bursary programme, cancer patients in the lower

income groups who are undergoing treatment at government

hospitals can apply to MAKNA for financial aid via the

hospitals’ medical social works department. Financial aid is

provided in the form of necessities that include non-formulary

drugs, surgical equipment, prostheses, colostomy bags and

also a monthly allowance for those who need it.

In 2014, MAKNA assisted:

In total, MAKNA disbursed:

Types of Assistance:

4,695 adult cases

RM7.1 million in aid

479paediatric cases

Referrals from

88 Government Hospitals

Confirmed >90% patients received aid from MAKNA

14 daysprocessing time

ProsthesisFinancial Assistance

Surgical Equipment

Appliances Non-Formulary Drugs

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12 13

VOlUNTEERS

Volunteers are a vital component of MAKNA. They are invaluable in helping MAKNA cast a wider net and extend

its support to a larger group of cancer patients as they undergo treatment and to the communities in all parts of

the country. Some of the MAKNA volunteers are cancer survivors themselves and this group helps other cancer

patients by sharing their own experience struggling with and surviving cancer.

Total volunteers in 2014:

256Very Active

22Leaders

Total activities conducted

239

155Active

60Potential Leaders

Main Functions

Home Visit

Support Group

EdUCaTiON aNd aWaRENESS

Aside from helping cancer patients, another key objective of MAKNA is to help reduce cancer incidences

in Malaysia through continuous education to drive awareness and encourage positive health behaviour

changes. The MAKNA Exhibition team organises talks and exhibitions on a yearly basis in addition to regular

demonstrations, road shows, breast self-examination, etc., in local communities, corporate sector, government

agencies, institutes of higher learning and schools.

Total exhibitions

in 2014

91

24Government

Agencies

28Corporate

18Schools

16Universities

5Communities

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14 15

CaNCER RESEaRCH

MAKNA has embarked on cancer research actively over the past 14 years. As of 2014, RM10.2 million has been allocated to fund

research through 19 collaborative efforts with various institutions of higher learning and research institutes. Through funding and

grants, MAKNA aims to advance the prevention, detection and treatment of cancer, and ultimately drive down cancer mortality.

These 19 collaborations have spawned:

71

42Pre-clinical

12010

22011

02012

32013

32014

1Epidemiology

1Health Policy & Outcomes

7Others

18Basic

(36 Completed)

1

14PhDs

61MScs

in collaboration with Ministry of Health Malaysia and the

Institute for Medical Research

No. of peripheral blood stem cell/bone marrow transplants:

24,260 Registered Stem Cell Donors

PPUKM-MaKNa CaNCER CENTRE

The Cancer Centre, established in 1999 in collaboration with PPUKM (Pusat Perubatan Universiti Kebangsaan Malaysia),

provides comprehensive and state-of-the-art facilities to cancer patients of all financial backgrounds. The Cancer Centre

comprises an oncology ward, a radiotherapy services centre and a bone marrow transplant ward.

In 2014

Total Patients Received Treatment at MCC

1,396

24Patients Underwent

Bone Marrow Transplant

103Patients Underwent

Radiotherapy

599Patients Admitted to

Oncology Ward

Female

733Male

663

Malaysian Stem Cell Registry

The only registry with high donors for

Malay ethnicity.

Seeks to answer fundamental questions about development and

nature of cancer.

Provides results applicable to prevention, diagnosis or treatment of cancer, and rehabilitation of cancer

patients, but not ready for use in human.

Investigates creation and effects of laws and public policies affecting people making health decisions related to cancer control.

Investigates circumstances under which

cancer occurs in populations.

5 public health and 2 nutrition studies.

9Total

Research Projects

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16 17

dONOR aCQUiSiTiONMAKNA has stayed true to its mission – to help

cancer patients – by funds received from donations.

At the same time, to ensure there is no interruption

to the aid channelled to patients, MAKNA puts

continuous effort into fund-raising. Some of the

initiatives carried out in this aspect included:

This fund-raising project has been the main income generator for MAKNA since 2002. Each donor commits to

MAKNA a monthly deduction of RM38 to RM58. The donation is made via credit cards or bank accounts.

MAKNA e-Charity enables donors to make their donations via credit cards or online banking payment from the MAKNA

website www.makna.org.my, and empowers individual to crowdfund via peoplegiving.org and simplygiving.com

The initiaves under SSL include Kempen Kutip Syiling and donation boxes. Kempen Kutip Syiling is a programme in

partnership with the Ministry of Education and Bank Negara Malaysia where primary and secondary school students

are encouraged to collect coins and hand them over to their school authorities who will eventually bank them into the

designated MAKNA bank account. Donation boxes are available in small, medium and big sizes, and are provided to

parties who are organising donation drives or willing to host the boxes.

RM25.6 MillionTotal Income

e-Charity

RM181,920Total Donation

Donation Box

RM79,130Total Collection

Kempen Kutip Syiling

RM123,723Total Collection

9,618New Donors

My Pledge Against Cancer Direct Debit Donor Programme Year 2014

Sen Saves Lives Year 2014

e-Charity Year 2014

MAKNA provides this service with the aim of supporting not

just cancer patients, but also their families, caregivers and

the general public. Personnel trained in oncology manned

the helpline as well as incoming email seeking information,

guidance and emotional support.

The support group is headed by trained staff and volunteers.

The purpose of the support group is to counsel cancer

patients, their family members or caregivers to help them

better cope with the emotional demands of battling cancer.

The provision of this scholarship aims to help young cancer

survivors to further their tertiary studies. Underprivileged

cancer survivors aged 25 or younger with the right potential

and interest will be offered financial assistance to pursue

their studies.

The house enables patients and their caregivers who are

from afar to stay on a short-term basis while waiting to

receive treatment from the hospital.

OTHER SERViCESCaNCER HElPliNE

CaNCER SUPPORT gROUP

YOUNg CaNCER SURViVOR SCHOlaRSHiP

HalfWaY HOUSE

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18 19

WiRa KaNSER

KliMB fOR CaNCER

MaKNa fOUNdER’SNigHT RUN

JOM BOTaK! 2.0

aCTiViTY HigHligHTS

fiNaNCial STaTEMENT20212223242527

Statement by Executive Committee Members

Report on the Financial Statements

Statement of Income and Expenditure

Statement of Assets, Liabilities and Fund Balances Statement of Changes in Accumulated Fund

Cash Flow Statement

Notes to the Financial Statements

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19

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20 21

STaTEMENT BY EXECUTiVE COMMiTTEE MEMBERSWe, Dato’ Mohd Farid Ariffin and Zainol Bahari Talib, two of the Executive Committee members of Majlis Kanser Nasional, state that, in the opinion of the Executive Committee, the financial statements set out on pages 22 to 34 are drawn up so as to give a fair presentation of the financial position of the Society as at 31 December 2014 and of the financial performance and cash flows of the Society for the financial year ended on the date in accordance with the accounting policies set out in Note 2 to the financial statements.

Dato’ Mohd Farid AriffinPresident

Kuala Lumpur09 July 2015

Zainol Bahari TalibHonorary Treasurer

REPORT ON THE fiNaNCial STaTEMENTS We have audited the financial statements of Majlis Kanser Nasional (the “Society”), which comprise the statement of assets, liabilities and fund balances as at 31 December 2014, and the statement of income and expenditure, statement of changes in accumulated fund and cash flow statement for the financial year then ended, and a summary of significant accounting policies and other explanatory information, as set out on pages 22 to 34.

Executive Committee Members’ Responsibility for the Financial Statements

The Executive Committee Members (“the Committee”) of the Society are responsible for the preparation and fair presentation of the financial statements in accordance with the accounting policies set out in Note 2 to the financial statements. The Committee is also responsible for such internal controls as the Committee determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditors’ Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with approved standards on auditing in Malaysia. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on our judgement, including the assessment of risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, we consider internal controls relevant to the Society’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Society’s internal controls. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Committee, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

In our opinion, the financial statements present fairly, in all material respects, the financial position of the Society as at 31 December 2014 and of its financial performance and cash flows for the financial year then ended in accordance with the accounting policies set out in Note 2 to the financial statements.

OTHER MATTERS

This report is made solely to the members of the Society and for no other purpose. We do not assume responsibility to any other person for the content of this report.

Kuala Lumpur09 July 2015

PRICEWATERHOUSECOOPERS(No. AF: 1146) Chartered Accountants

Azizan Bin Zakaria(No. 2930/05/16 (J))Chartered Accountant

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22 23

The notes on pages 27 to 34 form part of these financial statements.

STaTEMENT Of iNCOME aNd EXPENdiTURE

For The Financial Year Ended 31 December 2014

Note 2014 2013 RM RMINCOME

Receipts from projects 3 27,338,916 26,399,364Donation received from individuals, societies and corporations 251,260 380,715Interest from deposits 1,898,888 1,464,713Dividend income 655,143 706,967Interest from investment 33,000 33,000Annual subscriptions 1,202 3,130

30,178,409 28,987,889

LESS: EXPENDITURE

Bursary 7,184,006 7,031,962Salaries and related costs 7,199,323 6,656,607Activities costs 7,174,437 5,262,089Administrative costs 740,740 733,631Depreciation of property, plant and equipment 215,528 730,485Provision for impairment of amount due from related party 61,200 170,445Consumables, cleaning and utilities 179,594 159,780Provision for impairment of investment 661,606 100,855Scholarships granted 2,860 7,589

4 23,419,294 20,853,443

SURPLUS OF INCOME OVER EXPENDITURE BEFORE TAXATION 6,759,115 8,134,446

TAXATION 5 (28,790) (45,575)

SURPLUS OF INCOME OVER EXPENDITURE AFTER TAXATION 6,730,325 8,088,871


STaTEMENT Of aSSETS, liaBiliTiES aNd fUNd BalaNCES

As At 31 December 2014

Note 2014 2013 RM RMNON-CURRENT ASSETS

Property, plant and equipment 6 2,779,815 2,908,481Long term investment 1,000,000 1,000,000

3,779,815 3,908,481

CURRENT ASSETS

Investments 7 7,555,719 7,967,018Receivables 8 1,175,594 644,950Tax recoverable 91,078 80,400Amount due from related party 9 - -Fixed deposits with licensed banks 10 58,197,458 52,730,900Cash and bank balances 10 9,805,309 8,081,610

76,825,158 69,504,878

CURRENT LIABILITIES

Trade and other payables 11 2,116,335 1,608,209Hire purchase payables 12 3,238 46,837

2,119,573 1,655,046

NET CURRENT ASSETS 74,705,585 67,849,832

LESS: NON-CURRENT LIABILITY

Hire purchase payables 12 - (3,238)

78,485,400 71,755,075

Financed by:

ACCUMULATED FUND

Accumulated surplus of income over expenditure 78,485,400 71,755,075

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24 25


STaTEMENT Of CHaNgES iN aCCUMUlaTEd fUNd


TOTAL RM

2013

Balance at 1 January 2013 63,666,204

Surplus of income over expenditure 8,088,871

Balance at 31 December 2013 71,755,075

2014

Balance at 1 January 2014 71,755,075

Surplus of income over expenditure 6,730,325

Balance at 31 December 2014 78,485,400


CaSH flOW STaTEMENT


Note 2014 2013 RM RMCASH FLOWS FROM OPERATING ACTIVITIES

Surplus after tax 6,730,325 8,088,871

Adjustment for:Depreciation of property, plant and equipment 215,528 730,485Interest income (1,898,888) (1,464,713)Investment income (33,000) (33,000)Dividend income (655,143) (706,967)Tax expense 28,790 45,575Provision for impairment of amount due from related party 61,200 170,445Provision for impairment of receivables - 7,212Provision for impairment of investment 661,606 100,855

Surplus before working capital changes 5,110,418 6,938,763

Changes in working capital:- Receivables (530,644) 57,798- Related party (61,200) (170,445)- Payables 508,126 (439,944)

Cash generated from operating activities 5,026,700 6,386,172

Interest received 1,898,888 1,464,713

Net cash flow generated from operating activities 6,925,588 7,850,885

CASH FLOWS FROM INVESTING ACTIVITIES

Purchase of property, plant and equipment (86,862) (146,806)Investment income received 33,000 33,000Dividend received 365,368 340,447

Net cash flow generated from investing activities 311,506 226,641

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26 27


CaSH flOW STaTEMENT (Cont’d)


Note 2014 2013 RM RMCASH FLOWS FROM FINANCING ACTIVITY

Hire purchase paid (46,837) (73,224)

Net cash flow used in financing activity (46,837) (73,224)

Net increase in cash and cash equivalents 7,190,257 8,004,302Cash and cash equivalents at beginning of the financial year 60,812,510 52,808,208

Cash and cash equivalents at end of the financial year 68,002,767 60,812,510

Cash and cash equivalents comprise:- Cash and bank balances 10 9,805,309 8,081,610- Fixed deposits with licenced banks 10 58,197,458 52,730,900

68,002,767 60,812,510

NOTES TO THE fiNaNCial STaTEMENTS


1. CONSTITUTION

Majlis Kanser Nasional (“MAKNA”) was registered on 10 November 1994 and officially launched on 30 March 1995 and was approved by the Department of Inland Revenue for the purposes of Section 44(6) of the Income Tax Act, 1967. The objectives of Majlis Kanser Nasional are to work towards the attainment of a better health care system for all Malaysians especially in terms of the prevention and control of cancer; to develop and formulate policies for cancer prevention and intervention; to strengthen and generate services and programmes on cancer and to strengthen support services for cancer patients and affected persons.

MAKNA has 151 (2013:159) employees at the end of the financial year.

The address of the principal place of activity is as follows:

BG 03A & 05, Ground Floor Megan Ambassy, 225, Jalan Ampang 50450, Kuala Lumpur.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(a) Property, plant and equipment

Property, plant and equipment are stated at cost less accumulated depreciation and impairment losses.

Property, plant and equipment are depreciated on a straight line basis to write-off the cost of each asset over its expected useful life. The principal annual rates of depreciation used are as follows:

Building 2.0%

Office renovation 33.3%

Hospital renovation 20.0%

Office equipment 20.0%

Hospital equipment 20.0%

Computer equipment 20.0%

Furniture and fittings 20.0%

Mobile trailer 20.0%

Motor vehicle 20.0%

Property, plant and equipment received on donation are not capitalised.

At each balance sheet date, an assessment is made for any indication of impairment. If such indications exist, an analysis is performed to assess whether the carrying amount of the asset is fully recoverable. A write down is made if the carrying amount exceeds the recoverable amount. See accounting policy Note 2 (e) on impairment of assets.

(b) Cash and cash equivalents

Cash and cash equivalents consist of cash at bank and fixed deposits with licenced bank. Cash and bank balances comprise of highly liquid investment which are readily convertible to known amount of cash which are subject to an insignificant risk of change in value.

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NOTES TO THE fiNaNCial STaTEMENTS (Cont’d)


2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D)

(c) Income and expenditure

Income is recognised when it is probable that economic benefits associated with the transaction will flow to the organisation and the amount of income can be measured reliably.

Receipts from projects

Receipts from projects relate to donation received and are recognised on a receipt basis.

Interest from deposits with licensed banks

Interest from deposits with licensed banks is recognised on an accrual basis determined based on the principal outstanding and the rates applicable.

Interest from investment

Interest from investment is recognised on an accrual basis determined based on the principal outstanding and the rates applicable.

Dividend income

Dividend income is recognised when the right to receive payment is established.

Expenditure is recognised on an accrual basis.

(d) Investments

Investments are stated at lower of cost or market value on an aggregate portfolio basis. On disposal of an investment, the difference between the net disposal proceeds and its carrying amount is charged or credited to the statement of income and expenditure.

Investments are classified as current assets if maturity is due within one year or less. If not, they are presented as non-current assets.

(e) Impairment of assets Property, plant and equipment are reviewed for impairment losses whenever events or changes in

circumstances indicate that the carrying amount may not be recoverable. Impairment loss is recognised for the amount by which the carrying amount of the asset exceeds its recoverable amount.

The recoverable amount is the higher of an asset’s net selling price and value in use. For the purpose of assessing impairment, assets are grouped at the lowest level for which there is separately identifiable cash flows. The impairment loss is charged to the statement of income and expenditure and any subsequent increase is recognised in the statement of income and expenditure.



2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D)

(f) Receivables

Receivables are measured initial at cost less provision for impairment. The provision is establish when there is objective of evidence that the Society will not be able to collect the amounts due according to the original terms of receivables.

(g) Payables

Payables are obligations to pay for goods and services that have been acquired in the ordinary course of operation from suppliers. Payables are recognised at cost.

(h) Finance lease

Leases of motor vehicles where the Society has substantially all the risks and rewards of ownership are classified as finance leases.

Finance leases are capitalised at the lease’s commencement at the lower of the fair value of the leased property and the present value of the minimum lease payments. Each lease payment is allocated between the liability and finance charges so as to achieve a constant rate of interest on the remaining balance of the liability. The corresponding rental obligations, net of finance charges, are included in other long-term payables. The interest element of the finance cost is charged to profit or loss over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period.

Motor vehicle acquired under finance leases is depreciated over the shorter of the useful life of the asset and the lease term.

(i) Income taxes

Current tax expense is determined according to the tax laws of each jurisdiction in which the Society operates and include all taxes based upon the taxable income.

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3. RECEIPTS FROM PROJECTS

2014 2013 RM RM

Donation received from projects:- Direct Debit Donor System 25,660,044 24,901,454- Mobile Project 269,340 539,418- MAKNA Founder’s Run 267,765 3,064- E-Charity 181,920 85,972- Exhibition/Pameran 154,471 15,866- Klimb for Kanser 145,973 17,940- Kempen Kutip Syiling 123,723 153,032- Volunteers 118,580 98,419- Payroll Giving 106,611 106,997- One Sen Campaign 79,130 95,107- MAKNA Cancer Survivors Gathering 67,443 -- Ad-hoc 60,080 316,337- Jom Botak 45,206 11,940- Bursary Com. Mobile (BCM) Team 35,487 -- Merchandise & Home Visit 12,724 21,351- Direct Mail 8,134 25,872- Sponsorship & Research 2,000 6,595- Others 285 -

27,338,916 26,399,364

4. EXPENDITURE

Included in expenditure are: 2014 2013 RM RM

Salaries and related costs 7,199,323 6,656,607Audit remuneration 20,000 20,000Legal fees 3,090 2,536Provision for impairment of receivables - 7,212

The employee information is as follow:

Salaries and wages 5,879,323 5,452,489Contribution to Employees’ Provident Fund 658,882 624,812Other employee benefits 661,118 579,306

7,199,323 6,656,607



5. TAXATION

MAKNA has been given exemption on income, other than dividend income, under Paragraph 13 of Schedule 6 of the Income Tax Act, 1967 with effect from 1 January 2001. The taxation charge for the financial year is in respect of dividend income. There is no taxation charge on the income of the Society arising from its operations which is exempted from taxation under the mutuality concept.

2014 2013 RM RM

Tax expense:- Current year 28,790 45,575

Taxation charge 28,790 45,575

6. PROPERTY, PLANT AND EQUIPMENT

Cost at Cost at 1.1.2014 Additions 31.12.2014 RM RM RM2014Building 2,830,801 - 2,830,801Office renovation 267,161 - 267,161Hospital renovation 593,711 - 593,711Office equipment 261,114 11,149 272,263Hospital equipment 1,099,116 3,827 1,102,943Computer equipment 553,065 70,538 623,603Furniture and fittings 172,690 1,348 174,038Mobile trailer 2,499,500 - 2,499,500Motor vehicle 585,266 - 585,266

8,862,424 86,862 8,949,286

Accumulated Accumulated depreciation Charge depreciation 1.1.2014 for the year 31.12.2014 RM RM RM

Building 226,464 56,616 283,080Office renovation 265,361 900 266,261Hospital renovation 593,711 - 593,711Office equipment 248,453 6,309 254,762Hospital equipment 1,061,896 17,404 1,079,300Computer equipment 472,697 45,925 518,622Furniture and fittings 128,195 14,974 143,169Mobile trailer 2,371,900 73,400 2,445,300Motor vehicle 585,266 - 585,266

5,953,943 215,528 6,169,471

Net book value 2,779,815

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6. PROPERTY, PLANT AND EQUIPMENT (CONT’D)

Cost at Cost at 1.1.2013 Additions 31.12.2013 RM RM RM2013Building 2,830,801 - 2,830,801Office renovation 264,461 2,700 267,161Hospital renovation 593,711 - 593,711Office equipment 249,774 11,340 261,114Hospital equipment 1,069,116 30,000 1,099,116Computer equipment 499,799 53,266 553,065Furniture and fittings 172,690 - 172,690Mobile trailer 2,450,000 49,500 2,499,500Motor vehicle 585,266 - 585,266

8,715,618 146,806 8,862,424

Accumulated Accumulated depreciation Charge depreciation 1.1.2013 for the year 31.12.2013 RM RM RM

Building 169,848 56,616 226,464Office renovation 264,461 900 265,361Hospital renovation 593,711 - 593,711Office equipment 243,894 4,559 248,453Hospital equipment 1,045,258 16,638 1,061,896Computer equipment 421,904 50,793 472,697Furniture and fittings 109,421 18,774 128,195Mobile trailer 1,872,000 499,900 2,371,900Motor vehicle 502,961 82,305 585,266

5,223,458 730,485 5,953,943

Net book value 2,908,481

MAKNA has 40,468.6 square metres of donated leasehold land in the Mukim Bentong, Pahang under a 99 year lease period from 2 February 1999 to 1 February 2098 which has not been capitalised in the financial statements. The land cannot be transferred, leased or mortgaged and can only be used for commercial building purposes.





7. INVESTMENTS

2014 2013 RM RM

Quoted unit trusts:

Cost 8,318,180 8,067,873Provision for impairment (762,461) (100,855)

7,555,719 7,967,018

Market value:- Quoted unit trusts 7,555,719 7,967,018

8. RECEIVABLES

2014 2013 RM RM

Debtors 528,742 298,250Less: Provision for impairment (12,100) (140,549)

516,642 157,701Prepayments 58,444 25,129Cash advances 36,388 14,579Deposits 31,116 52,816Accrued interest income 533,004 394,725 1,175,594 644,950

During the financial year, RM128,449 of debtors which had been fully provided for were written off (2013: NIL).

9. AMOUNT DUE FROM RELATED PARTY

2014 2013 RM RM

Amount due from related party 745,467 684,267Less: Provision for impairment (745,467) (684,267)

- -

The amount due from a related party is unsecured, interest free and has no fixed terms of repayment.

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10. CASH AND CASH EQUIVALENTS

2014 2013 RM RM

Fixed deposits with licensed banks 58,197,458 52,730,900Cash and bank balances 9,805,309 8,081,610

68,002,767 60,812,510

The weighted average interest rate per annum of fixed deposits with licensed banks effective as at the financial year end is 3.57% (2013: 3.32%) per annum. Fixed deposits have an average maturity period of 1 to 12 months (2013: 1 to 12 months). Bank balances are deposits held at call with banks.

11. TRADE AND OTHER PAYABLES

2014 2013 RM RM

Trade payables 1,188,751 626,083Other payables 778,030 840,032Accrued expenses 149,554 142,094

2,116,335 1,608,209

12. HIRE PURCHASE PAYABLES

The minimum lease payment as at the balance sheet date is as follow:

2014 2013 RM RM

CurrentNot later than 1 year 3,238 46,837 Non-currentLater than 1 year and not later than 5 years - 3,238

3,238 50,075



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w w w . m a k n a . o r g . m y

MAKNA (Majlis Kanser Nasional) or National Cancer Council Malaysia BG 03A & 05, Ground Floor, Megan Ambassy, No 225, Jalan Ampang 50450 Kuala Lumpur, Malaysia

Telephone: +603-2162 9178 Fax: +603-2162 9203 Email: [email protected]

a shoulder to lean on .,/t/bujpobm$bodfs$pvodjm and more · into establishing makna. most...

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